As price of a commodity increases the supply increases whereas the demand has inverse realation with price so demand for that comm.decreases....in this case won't the purchaser be in loss???
Dear Student,
When both the laws, that is 'law of demand' and 'law of supply' operate in an open market, market reaches a point called 'equilibrium'. At this point, the equilibrium price and equilibrium quantity is determined. This equilibrium price is the price at which the seller is willing to sell and the consumer is willing to buy the product and, the equilibrium quantity is the quantity that the seller is willing to sell and the consumer is willing to buy at the equilibrium price.
Hence, neither the purchaser nor the seller will be incurring any loss.
Keep Posting!!
When both the laws, that is 'law of demand' and 'law of supply' operate in an open market, market reaches a point called 'equilibrium'. At this point, the equilibrium price and equilibrium quantity is determined. This equilibrium price is the price at which the seller is willing to sell and the consumer is willing to buy the product and, the equilibrium quantity is the quantity that the seller is willing to sell and the consumer is willing to buy at the equilibrium price.
Hence, neither the purchaser nor the seller will be incurring any loss.
Keep Posting!!